More than 724,000 entrepreneurs make a living on eBay, and many
got started with just a few items from a garage sale or off a dusty
shelf at home. So how did they move from eBay as a hobby to eBay as
a business? Savvy product sourcing.
Finding products customers want to buy at a price they're
willing to pay requires strategic planning. The goal is to identify
suppliers with quality merchandise you can afford and in quantities
you have room to store. The list may include manufacturers,
wholesale and closeout distributors, liquidators or job lot
traders.
Trade shows, online marketplaces and trade portals are efficient
tools that offer a snapshot view of what's selling and at what
price, as well as company contact information.
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Trade shows provide access to hundreds of potential suppliers,
giving you the chance to see what's hot in the market and check
product quality firsthand. The face-to-face contact alone may be
worth your attendance. "The human element never goes away in
terms of getting a better deal," says Sam Bundy, group
president of VNU Expositions-ASD/AMD Merchandise Group, a trade
show management company in Santa Monica, California.
For exhibitor information, check with the local convention and
visitor's bureau in the host city or with the show's
management. Some show managers post a list online with hyperlinks
to exhibitor information. If the selection is too broad, look for
small regional shows with a narrower product focus.
Jen Lowe, 33, and Tom Nessen, 31, co-owners of Boom Boom
Percussion LLC (eBay User ID: boomdrums) in Atlanta, turned to
trade shows to diversify their line of musical instruments.
"The show was a good place to go and start building
connections with new vendors," Nessen says.
When meeting with vendors, avoid asking questions that peg you
as a newbie. Asking about payment and credit terms or product
features is a big no-no. "These are questions you wouldn't
be asking if you were experienced," says Eric Lau, 26,
co-founder of Vision Decor Furniture (eBay User ID: visiondecor) in
City of Industry, California, with $7 million in annual sales.
"They put doubts in the vendor's mind."
If trade shows aren't an option, online solutions offer a
convenient, affordable alternative. Companies post wholesale
pallets for sale on trade portals and bulletin boards. The Michigan
State University Center for International Business Education and
Research hosts a comprehensive website that lists many of these
sites as well as a trade leads bulletin board.
For products overseas, a service for exporters in China is
available from Global Sources Ltd. (eBay User ID:
globalsourcesdirect) and for general buyers at its online store,
www.global sourcesdirect.com. "It's a good place to start
for somebody new to importing," says Peter Zapf, vice
president of Global's Singapore location. Though importing
introduces issues of customs clearance and duties, Zapf says,
"those complexities are offset by access to products at much
lower cost."
PowerSellers can also find merchandise through eBay's new
Reseller
Marketplace, which provides access to inventory directly from
suppliers without having to qualify with each supplier or meet
high-dollar minimums. Howard Rosenberg, eBay's director of
trading platforms, says offering "merchandise in a wide
variety of categories available at any given time provides an
opportunity for PowerSellers to grow their existing business or
expand to new product categories."
Julie Monahan is a writer in Seattle whose
articles on small business and emerging technology have appeared in
numerous consumer and trade magazines.